2021-03-31-accounts - Lms-Patriot Company Limited

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Registered Charity: 1123521 Company Number: 06502248

LMS-Patriot Company Limited (A company limited by guarantee)

Financial Statements

For the Year Ended 31st March 2021

LMS-Patriot Company Limited

Financial Statements

for the year ended 31 March 2021

Contents
	Page
Report of the Trustees	1
Report of the Independent Examiner	6
Statement of Financial Activities	7
Balance Sheet	9
Notes to the Financial Statements	10

LMS-Patriot Company Limited

Report of the Trustees for the year ended 31 March 2021

The trustees are pleased to present their annual directors’ report together with the financial statements of the charity for the year ending 31 March 2021 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) published in October 2019.

Name:	LMS-Patriot Company Limited	LMS-Patriot Company Limited
Registered Company Number:	06502248
Registered Charity Number:	1123521
Registered Office:	The Hub
	17 Eastgate Street
	Stafford
	Staffordshire
	ST16 2LZ
Principal Office:	The Hub
	17 Eastgate Street
	Stafford
	Staffordshire
	ST16 2LZ
Independent Examiner:	Richard Stonier
	Deans
	Chartered Accountants
	Gibson House
	Hurricane Court
	Hurricane Close
	Stafford	ST16 1GZ
Bankers:	CAF Bank Ltd
	25 Kings Hill Avenue
	Kings Hill
	West Malling
	Kent
	ME19 4JQ

Trustees and Directors:

The directors of the charitable company (the charity) are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees.

Trustees serving during the year and their positions held were as follows:

	A R Laws
	R M Sant
	K J Finnerty
	J Hastings-Thomson
	N Kinsey
	N Collinson
	C M Hall
	K H Riches
Secretary:	R M Sant
Treasurer :	N Collinson

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees are responsible for preparing the financial statements in accordance with applicable law and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102).

Law applicable to charitable companies requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements the trustees are required to:

select suitable accounting policies and then apply them consistently;
• observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Documents

LMS-Patriot Company Limited is a company limited by guarantee governed by its Memorandum and Articles of Association as amended

The Trustees shall be appointed to serve for three years and shall be eligible to stand for re-election at that time.

Trustee Induction and Training

New trustees undergo a training process to explain to them their statutory obligations under charity and company law, the Memorandum

Organisation

The board of trustees, which shall number a minimum of three with no maximum numbers, administers the charity. The board meets

RISK MANAGEMENT

The trustees have a risk management strategy which comprises a formal review of the risks faced and the development and implementation Generally the board has adopted the principles of the Code of Governance to allow it to meet for openness and transparency.

OBJECTIVES AND ACTIVITIES

The purpose of the charity is to advance the education of the public in relation to the Patriot class of railway engines and particularly the To further that objective the activities for the year continue to be:-

To build, maintain, exhibit and operate locomotives of historic or scientific importance and in particular (but not limited to) a Fowler To encourage and facilitate knowledge of the history of the Patriot Class of railway locomotives, including the dedication of the class name In setting our objectives and planning our activities, the Trustees have given careful consideration to the Charity Commission's general

ACHIEVEMENTS FOR THE YEAR 2020-21

2020-21 was a challenging year for the project.

Progress was very significantly affected by the Coronavirus pandemic. Work on the rolling chassis stopped completely at West Shed from March to early August, and slowed at HBSS on the boiler and Leaky Finders on the tender chassis. With just one exception, our Sales stand activities ceased altogether throughout the year at Heritage railways and other exhibition sites: at the time of writing (July 2021) the situation is far from returning to normal.

For much of the year, our engineering and administration contact was limited to on-line ‘Zoom’ meetings: all our 2020/21 Board meetings had to be conducted in the same way. The Stafford premises which house our Administration office were closed from March 2020 to May 2021. It was not possible to hold an AGM or any Members Day in the year, although we did hold an on-line Forum and members Q&A (with some technical glitches) in October.

All of this presented a big management and communication challenge, but happily we were able to keep going with more regular engineering team meetings than in the past. We also developed and maintained a better finance / cash flow forecasting system, which helped us navigate the pandemic uncertainties.

I want to single out our Office Manager who, with her husband’s help, effectively maintained our office activity working at home. Without this, the vital administration tasks of membership and donations management, Warrior magazine and other mailings could have foundered.

Despite the pandemic we continued to build our relationship with the Princess Royal Class LocomotiveTrust (PRCLT). This was absolutely vital, as we had to confront difficult issues with the rolling chassis that emerged through the year.

Firstly, we decided in September 2020 that the bogie had to be redesigned to revert to the standard Patriot design, and progressed redesign work from that point. That big decision was itself overshadowed by developmentswith the driving wheels. Quality issues with historic weld repairs required re-work of the welds to the standard required. As this work progressed (at Riley and Son, Bury) over the winter period, serious flaws were detected in one of the driving wheels. By the end of 2020/21 it was clear that this wheel had to be replaced. At the time of writing, it was clear from testing that the other five driving wheels face the same fate. We will be reporting the latest status of the way forward for the project at our Autumn 2021 AGM.

These issues did not stop work on completing the lubrication system up to the axle boxes and horn guides; a whole host of smaller fixings and components have been produced by PRCLT; other repairs were carried out; and the reverser shaft was trial-fitted. Several key components, for example the motion and the reverser shaft, were in effect stranded at other work sites because of the effects of the pandemic, and this delayed inspection work until the 4th quarter of the year. Assessment of the current status of all the rolling chassis components is continuing into 2021/22.

Work on the tender frames refurbishment at Leaky Finders made steady progress through the year. Our certification body carried out a detailed quality assessment on-site in December 2020; and by March 2021, with the chassis frames work close to completion, we established the costed work packages needed to create the rolling chassis.

Similarly work on the boiler continued at HBSS at a steady pace: by the end of the financial year, the work on tooling over the copper stays and fitting the boiler slides was virtually complete; and a completed costed workscope for the boiler was in place.

2020/21 was our first year of working with our Derby-based certification body Ricardo. Their assistance has been very valuable in managing our quality issues. Alongside this, we made a start in 2020/21 on organising the risk assessment and quality management work needed to support main-line approval, which has to continue.

Against all this background, we would again like to thank our volunteers for their commitment to the project over the past twelve months, and express our gratitude to our members and donors for their loyalty, understanding and financial help throughout this difficult year. We sincerely hope that life has begun to return to normal for everyone, and our thoughts are with those who suffered the consequences of the pandemic.

FINANCIAL REVIEW

Investment powers and policy

Where surplus funds arise these will be invested in short term interest bearing deposit accounts.

Reserves Policy

LMS-Patriot Company Limited holds reserves to act as a cushion against any shortfall in revenue and in order to continue to fulfil its charitable purposes. In addition, funds are set aside to meet payment of loan interset as and when they fall due. The charity has reserves of £2,572,955 including free reserves before fixed assets and loans of £151,442.

The Trustees review the reserves policy annually and aim to maintain reserves at the level of one year's support costs having due regard to uncertainties relating to future levels of funding.

The trustees are of the view that the charity is a going concern.

RESTRICTED FUNDS

Charities have an obligation to account to the donors of funds and the public in general that they are using monies entrusted to them for the purpose for which they are given. The charity has a number of restricted income funds for situations where a donor requires that a donation be spent on a particular purpose or where funds have been raised for a specific purpose. All other funds are unrestricted income funds.

Details of restricted funds are shown in note 2.

FINANCIAL STATEMENTS

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the Board of Trustees on 31 July 2021

And signed on its behalf by

R Sant Trustee

LMS-Patriot Company Limited

Independent Examiner's Report to the Trustees of LMS-Patriot Company Limited

I report on the accounts of the company for the year ended 31st March 2021, which are set out on pages 7 to 16.

Responsibilities and basis of report

As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

1 accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
2 the accounts do not accord with those records; or
3 the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
4 the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Richard Stonier FCA Deans Chartered Accountants Gibson House Hurricane Court Hurricane Close Stafford ST16 1GZ Dated

LMS-Patriot Company Limited

Statement of Financial Activities (Including Income and Expenditure Account) for the year ended 31 March 2021

Unrestricted Funds £ 70,712 60,000 76,275 550 5,000 26,617	Restricted Funds £ 17,467 - - - - -	Total 2021 £ 88,179 60,000 76,275 550 5,000 26,617	Total 2020
			£ 95,869 60,000 77,229 530 - 57,964
239,154	17,467	256,621	291,592
12,401 6,591 21,448 5,025	- - - -	12,401 6,591 21,448 5,025	27,744 3,519 22,307 3,020
45,465	-	45,465	56,590
31	-	31	131
31	-	31	131
284,650 4,163 460 1,184 235 9,015 9,601	17,467 - - - - - -	302,117 4,163 460 1,184 235 9,015 9,601	348,313 8,337 8,314 1,146 224 10,499 13,393
24,658	-	24,658	41,913
- 8,268 1,183 235 1,246 1,417 4,946 662 1,545	- - - 775 52 7,152 - - -	- 8,268 1,183 1,010 1,298 8,569 4,946 662 1,545	2,758 9,335 2,886 3,994 1,228 7,892 11,291 699 1,500
19,502	7,979	27,481	38,825
44,160	7,979	52,139	83,496

LMS-Patriot Company Limited

Statement of Financial Activities for the year ended 31 March 2021

Net income TRANSFERS BETWEEN FUNDS Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward Total funds carried forward	Unrestricted Funds £ 240,490 (3,141) 237,349 2,279,231 2,516,580	Restricted Funds £ 9,488 3,141 12,629 43,746 56,375	Total 2021 £ 249,978 - 249,978 2,322,977 2,572,955	Total 2020
				£ 264,817 -
				264,817 2,058,160
				2,322,977

LMS-Patriot Company Limited

Company number 06502248

Balance Sheet as at 31 March 2021

£ £ 2,594,662 205,266 17,000 1,208 183 2,818,319 16,994 6,875 2,462 3,827 149,238 179,396 (47,954) 131,442 2,949,761 (376,806) 2,572,955 2,516,580 56,375 2,572,955 2021	2020	2020
£ 2,594,662 205,266 17,000 1,208 183 16,994 6,875 2,462 3,827 149,238 179,396 (47,954)	£ 2,423,532 188,924 17,000 1,778 275 17,681 22,579 3,499 7,619 40,756 92,134 (58,155)	£ 2,631,509 33,979
		2,665,488 (342,511)
		2,322,977
		2,279,231 43,746
		2,322,977

For the year ending 31/03/2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the companies act 2006. The trustees acknowledge their responsibilities for

(a)ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the

end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The notes on pages 10 to 16 form part of these accounts.

Approved by the Board of Trustees on 31 July 2021

and signed on its behalf by

Colin Hall

Trustee

LMS-Patriot Company Limited

Notes to the Financial Statements for the year ended 31 March 2021

1 ACCOUNTING POLICIES

Basis of preparation

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (issued in October 2019', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', the and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Company status

The charity is a company limited by guarantee and does not have share capital. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member.

Financial reporting standard 102 ‐ reduced disclosure exemptions

The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

• the requirements of Section 7 Statement of Cash Flows.

Incoming resources

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when:

The donor specified that the grant or donation must only be used in future accounting periods or, The donor has imposed conditions, which must be met before the charity has unconditional entitlement.

Income from commercial trading activities is recognised as earned (as related goods and services are provided).

Investment income is recognised on a receivable basis.

Resources expended

Resources expended have been included in the financial statements when an obligation to transfer value to a third party has been entered into.

Resources expended have been allocated in the Statement of Financial Activities as follows:-

LMS-Patriot Company Limited

Notes to the Financial Statements for the year ended 31 March 2021

Costs of raising funds - all expenditure relating to fundraising and publicity.
Other resources expended - all expenditure not in the above categories.

LMS-Patriot Company Limited

Notes to the Financial Statements for the year ended 31 March 2021

1 ACCOUNTING POLICIES

Allocation of expenditure

Expenditure is allocated on the following basis:

a) Expenditure wholly incurred on activities falling within each category is charged direct.

b) Expenditure involving more than one category is apportioned in accordance with reasonable estimates.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. - Locomotive parts & construction no depreciation provided - Tender Rebuild no depreciation provided - Mobile Crane no depreciation provided - Fixtures & fittings 25% on reducing balance basis - Office Equipment 4 year straight line basis

The Patriot Class locomotive is in the course of a long period of construction. Until the locomotive construction is complete and it is operating, it is not considered that the asset is depreciating.

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors. Those funds have been raised by the company for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim of each restricted fund is set out in the notes to the financial statements.

Stock

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

LMS-Patriot Company Limited

Notes to the Financial Statements for the year ended 31 March 2021

LMS-Patriot Company Limited

Notes to the Financial Statements for the year ended 31 March 2021

2 MOVEMENT IN FUNDS Restricted funds: Tender Wheels Appeal Horn Guides Spring Hanger Cylinder Appeal Sponsored Parts Boiler Brake Appeal Support Coach Unrestricted funds: General funds Total funds	Balance Income Expenditure Transfers Balance 31/03/2020 31/03/2021
	£ £ £ £ £ 466 2,110 - - 2,576 2,132 280 - - 2,412 1,250 - - - 1,250 - 540 - - 540 400 - - - 400 29,908 11,977 - - 41,885 - 3,493 1,345 (7,979) 3,141 - 200 1,215 - - 1,415 5,897 - - 5,897
	43,746 17,467 (7,979) 3,141 56,375
	2,279,231 284,650 (44,160) (3,141) 2,516,580

	2,322,977 302,117 (52,139) - 2,572,955

NET INCOME
Net income is stated after charging	2021	2020
	£	£
Depreciation	685	699
Independent examination	1,545	1,500
There were no employees who received total employee benefits of more than £60,000

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.

4 TANGIBLE FIXED ASSETS

Cost At 1st April 2020 Additions At 31st March 2021 Depreciation At 1st April 2020 Charge for year At 31st March 2021 NBV at 31st March 2021 NBV at 31st March 2020 5 DEBTORS Gift Aid Debtors	Patriot Tender Mobile Fixtures Build Rebuild Crane & Fittings 2,423,532 188,924 17,000 7,764 171,130 16,342	Office Total Equipment 6,959 2,644,179 187,472
	2,594,662 205,266 17,000 7,764	6,959 2,831,651
	- - - 5,986 - - - 570	6,684 12,670 92 662
	- - - 6,556	6,776 13,332
	2,594,662 205,266 17,000 1,208	183 2,818,319
	2,423,532 188,924 17,000 1,778	275 2,631,509
		2021 2020 5,395 20,336 1,480 2,243
		6,875 22,579

LMS-Patriot Company Limited

Notes to the Financial Statements for the year ended 31 March 2021

6 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2021 Trade Creditors 26,409 Loans due within one year 20,000 Other Creditors 1,545 47,954 7 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2021 Loans - 1-2 years - Loans - 2-5 years 101,417 Loans due after more than 5 years 275,389 376,806 Amounts falling due in more than five years: Loans due after more than 5 years payable other than by instalment 275,389 8 ANALYSIS OF NET ASSETS BETWEEN FUNDS 2021 Unrestricted Restricted Fixed Assets 2,486,555 331,764 Net Current Assets 131,442 - Creditors falling due after more than one year (101,417) (275,389) 2,516,580 56,375 2020 Unrestricted Restricted Fixed Assets 2,295,252 336,257 Net Current Assets 33,979 - Creditors falling due after more than one year (50,000) (292,511) 2,279,231 43,746	2020 35,096 21,559 1,500
	58,155
	2020 - 50,000 292,511
	342,511
	292,511
	Total 2021 £ 2,818,319 131,442 (376,806)
	2,572,955
	Total 2020 £ 2,631,509 33,979 (342,511)
	2,322,977

LMS-Patriot Company Limited

Notes to the Financial Statements Report of the Trustees

9 CAPITAL COMMITMENTS

Contracted but not provided in the financial statements	2021 £ 101,602	2020 £ 118,000

10 TRANSACTIONS WITH DIRECTORS (TRUSTEES)

During the year the trustees received reimbursement of expenditure (generally for travelling and accommodation) incurred by them in undertaking functions on behalf of the charity as follows:

A R Laws R M Sant K J Finnerty J Hastings-Thomson N Kinsey N Collinson K H Riches C M Hall	2021 £ - - - - - - - 811 811	2020 £ 151 609 - - 397 485 446 400
		2,488

The charity's trustees make membership payments to the charity at the same rate as ordinary members. No trustee received any remuneration from the charity in respect of the position of trustee.

11 TAXATION

The company as a charity is not liable to tax on its charitable activities. It is not undertaking any non charitable activities which could be subject to tax.